Initiatives of the Ajinomoto Group to
Achieve Decarbonization
November 15, 2023
The 20th Kawasaki International Eco-Business ForumToyosaki
Environment Group, Sustainability Development Department, Ajinomoto Co., Inc.

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

Purpose of Foundation and the Present“Creating good and affordable seasoning to improve the taste of plain
food that is rich in nutrients”- Wishing to improve nutrition for the Japanese people Discovered the “Umami” taste

Foundedin 1908

in 1909

Dr. Kikunae Ikeda, Professor of the Imperial
University of Tokyo

Saburokusuke Suzuki II

Discovered the“glutamine acid”, thetaste component inkombu (kelp) broth,and named it “umami”「美味しく食べて健康づくり」

Launched “AJI-NO-MOTO®”,
the world’s first umami
seasoning made fromglutamine acid

Consistent initiative since its foundation to create social values andeconomic values through its business activities= ASV (Ajinomoto Group Creating Shared Value)
Copyright(C)AJINOMOTO CO., INC. All rights reserved.

2

Developing a wide range of businesses with amino acids

Seasonings (B2C)

Businesses developed from the
AminoScience®*
AminoScience®

S&I (B2B)（Processedseasonings）

Biopharma services(pharmaceuticalmanufacturing)

Functions of Amino Acids
Amino Acids

Flavoring
Function

Processed foods

Basic substance thatbuilds the bodies of
all living things

Making the

Frozen foods

Electronic/
functional
materials(ABF, etc.)

Reactivity
Creating
new functions

taste better

Health/sports
supplements（functional foods）

Nutrition
Function

Cosmetics
Physiological
Function

Amino
Acids

Delivering nutrients

Conditioning
the body

Sweetener
Agrobusiness

Animalnutrition

Medical foods

AminoIndex🄬（diagnosis）
Amino acids forpharmaceutical use

Culture media(biomedicine /regenerative medicine)* A generic term for a wide variety of materials, functions, technologies, and services derived from research andimplementation processes that are thoroughly focused on the functions of amino acids. It also refers to the Ajinomoto Group's
unique scientific approach that links amino acids to solutions for social issues and contributions to well-being.
Copyright(C)AJINOMOTO CO., INC. All rights reserved.

3

Extensive operations around the world
Business areas

Number of production
factories

Number of
employees

36 countries
and regions

117 factories

34,615 employees

Healthcare, etc.
299.6 billion yen

Others17.1 billion yen

Healthcare, etc.
52.5 billion yen

Sales1,359.1 billion yen

Frozen foods
267.2 billion yen

Seasonings / foods
775.0 billion yen

Seasonings / foods
82.9 billion yen

Net operating profit
135.3 billion yen

Frozen foods
0.2 billion yen Others -0.4 billion yen

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

4

Purpose of the Ajinomoto Group

Corporate slogan

Solving food and health issues withthe function of amino acids

Contributing to the wellbeing of people, society,and the planet with AminoScience®

Purpose/ significanceof existenceContributing to thewellbeing of people, society,and the planet with
AminoScience®

Initiatives to realize
our purpose
Co-creating social andeconomic value throughour business

ValuesCreation of new value,
pioneering spirit, contribution
to society, respect for people

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

5

Toward Realization of the 2030 Outcome
Contributing to the wellbeing of people, society, and the planet with AminoScience®
Extending the healthy life expectancy of
1 billion people

Reducing environmental impact by 50%

Resilient and sustainable
food systems

Reduction and restoration of local
environmental impact

Contributing to a healthier andmore prosperous life

Response to climate change
Delicious and nutritionallybalanced meals

Sustainability of food resources
Conservation of biodiversity
Reducing load

Reduction of greenhouse gas
emissions
Reduction of plastic wastes
Reduction of food loss
Sustainable procurement

Securing foodresources

Delicious low-sodium
meals
Protein intake
Improved nutrition in theworkplace

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

6

ASV Social Value (Environmental) Indicators
IssuesKPI

Target

FY22 (achievement)

Whole
Total of Scopes 1 and 2

FY50: Net zero
FY30: 50% reduction(compared to FY18)

Reduced by 19%

Scope 3 intensity

FY30: 24% reduction(compared to 2018)

Reduced by 3%

Water consumption

FY25: 80% reduction(compared to FY05）

Reduced by 78%

Greenhouse gases
Response to
climate change
Water risk

Plastic wastes
Realization of arecyclingoriented society

Achievement ofsustainableprocurement

Food loss

Deforestation
Biodiversity
Human rights
Animal coexistence

FY30: Zero-

From acceptance of raw
materials to delivery tocustomers

FY25: Reduction by 50%（compared to FY18）

Reduced by 39%

Entire product lifecycle

FY50: Reduction by 50%（compared to FY18）-

Sustainable procurement
ratio
Paper
Palm oilSoybeans
Coffee beans
Beef, sugarcane

FY30: 100％ for procurable
procurement

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

98%
99%
34%
56%
Started the risk
assessment

7

Realization of ASV through Evolution of Sustainability
Information Disclosure

ASV
Economic
value

Reducing environmental impact by 50%

Contributing to ahealthier and more
prosperous life

Socialvalue

Communication with stakeholders- Information disclosure / engagement -Extending the healthy life expectancy of 1 billion people

Reduction andrestoration of
local
environmental
impactAccelerating
the initiatives- Annual Securities Report- Governance Report- ASV Report (Integrated Report)- Sustainability Report- Briefing Sessions- Actual Dialogue, etc.

Initiatives to realize
the outcome

Sustainable finance

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

8

Key Environmental Issues and Establishment of Global Frameworks

1995

2000

2005

2010

2015

2020

2025

Climate change
1997 COP3 Kyoto Protocol

2015 COP21 Paris Agreement
2015 SBT2017 TCFD
Recommendations

Natural capital (biodiversity)
2010 COP10 Nagoya Protocol
2022 COP15 Kunming-Montreal Global
Biodiversity Framework
2023 TNFD
From 2023 SBTN

Initiatives for the natural capital (biodiversity) efforts areunderway, following the framework of the preceding
initiatives for climate change.
Plastics is under discussion for the conclusion of a treaty.
There is no international movement to conclude a treaty on
food loss yet.

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

Plastic
2025 Conclusion of atreaty (desired)9Changes in the Global Sustainability Disclosure Framework

Accounting standards
establishing body
Established in 1997

Established in 2001

Established in 2007

Established in 2010

Established in 2016

General non-financial
information

Climate change andother environmentrelated information

Established in 2021

Adopted by EU in2015

Established in 1973

Established in 2011

Established in 2001

COP3 Kyoto Protocol

COP21 Paris Agreement

Sustainable Development Goals(SDGｓ): Adopted in the United
Nations Summit

There is a movement
toward standard unificationin recent years.
Comparability of
information is has been
increased globally.

Merged with SASB toform VRF (2021)

Integrated into
ISSB (2022)

CSRD, established as adirective by the European
Commission, and S1 andS2, prepared by the ISSB,a subordinate body of the
IFRS Foundation, arebeing finalized as global
disclosure rules.

Final S1 and S2(disclosure standards*)
published

Replaced with the ISSB Environmental
Recommendations (S2) (in 2024 or later)

ISSB was established by IASB (2021)

Adopted in EU (2022)

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

10

Breadth and Depth of Disclosure Information (Example of CSRD)

Disclosure details

Topics to be Disclosed
ESRS 1 General requirements
ESRS 2
policies
1 General disclosure
requirements

Governance

ESRS E-1 Climate change
ESRS E-2 Pollution
ESRS E-3 Water and marine resources

Strategies

ESRS E-4 Biodiversity and ecosystems
ESRS E-5 Resource use and circular economy

Impact/risk/opportunity
management

ESRS S-1 Own workforces
ESRS S-2 Workers in the value chain
ESRS S-3 Affected communities
ESRS S-4 Consumers and end- users

Targets/indicators
ESRS G-1 Business conduct

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

11

List of Sustainable Finance of the Ajinomoto Group■ The Ajinomoto Group defined that “contributing to the wellbeing of people, society, and the planet with
AminoScience®” was our “purpose” in the “Medium-Term ASV Initiatives 2030 Roadmap” announced in February, 2023.
■ We will actively use the sustainable finance in order to achieve two outcomes, “help extend the healthy life
expectancy of 1 billion people” and ”reduce our environmental impact by 50%” by 2030, and further accelerate ourinitiatives to realize the sustainable society.
Our website: Sustainable Finance｜ESG / Sustainability｜the Ajinomoto Group (ajinomoto.co.jp)

Date of contract/
issue

Type

Type ofsustainablefinance

Subject of theframework
creation

AmountTerm(Maturity)

Changes in theinterest rate
conditions

Dec. 25, 2020

AJINOMOTO.
(MALAYSIA)BERHAD

Sustainability
Link FinanceBusiness
institutions

100
MYR(Approx. 2.5
billion yen)

5 years

Yes

Oct. 21, 2021

Corporatebonds

Sustainability
Bonds

Business
institutions

Target, KPI

•
•
•
•

10 billion yen

7 years

No•

Target for reduction in the greenhouse gas
emissions by 2025
ESG index maintenance
Acquisition of shares in Nualtra Ltd.
Introduction of biomass cogeneration facilities
at the Kamphaeng Phet Plant of AJINOMOTO
CO., (THAILAND) LTD.
Investment in Tsubame BHB Co., Ltd.

Jan. 31, 2022

Borrowings(Commitment
line)

Positive
ImpactFinanceFinancial
institutions

30 billion yen

1 yearNo

Resource efficiency, safety, climate, waste,employment, health and hygiene
Personality and human security, biodiversity andecosystem services, water

Dec. 14, 2022

Borrowings(Commitment
line)

Sustainability
Linked Loan

Business
institutions

100 billion yen

3 yearsYes

GHG emissions reduction rate of the AjinomotoGroup in Scope1 and Scope2

Corporatebonds

Sustainability
Linked Bonds

Business
institutions

10 billion yen

5 years

Jun. 15, 2023

20 billion yen

10 yearsNo（purchase ofemissioncredits)

KPI1: Absolute scope 1 and 2 GHG emissions
reduction rate
KPI2: Scope 3 GHG emissions reduction rate pervolume unit

Supervision

Structure for Sustainability Development

InquireSustainability
Advisory Council

Board of Directors
Response
Supervise

ReportManagement Meetings
PolicyDirection

ReportExecution

Sustainability Committee
Chair: General Manager, Corporate DivisionVice-Chair: Executive Officer, Sustainability

PolicyDirection

ReportRisk Management Committee
Chair: Executive Officer (General Manager), Corporate DivisionVice-Chair: Executive Officer appointed by the Chair

Secretariat

Secretariat

Sustainability Development Dept.

Corporate Planning Dept.

Legal & Compliance Dept.

Global Finance Dept.

Corporate Planning Dept.

Legal & Compliance Dept.

Business Management Organizations
Corporate Division

Food Products Division

AminoScience Division

Overseas Division

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

13

CO2 Emissions from the Ajinomoto Group
Transportation,
processing, use,and disposal of
products.
20%

Scope 1 In-house businessactivities Mainly fuel combustion
10% (1.1 million ton)
Scope 2 Purchased energy
Mainly used for electricity
7% (0.8 million ton)
12 million
ton
Scope 3 Entire supply chain as a whole(excluding Scope1, 2)
83% (9.9 million ton)Raw materials
63%

Note: Figures are calculated based on SBTi's calculation standards(FY2018 results)
Copyright(C)AJINOMOTO CO., INC. All rights reserved.

14

Greenhouse Gas Reduction Targets of the Ajinomoto Group
Strategies of the Ajinomoto Group for
GHG reduction

Scopes 1 and 2

Scopes 3

GHG reduction investments such as
installation of cogeneration systems, fuelconversion to city gas, and purchase ofnon-fossil certificates*
Acceleration of collaboration with external
parties including suppliers, development
and introduction of new technologies(Compared to
FY 2018)(Compared to
FY 2018)

Achievingnet-zero

Achieving the goal of 100% renewable energy use by 2050

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

15

Efforts for Reducing Greenhouse Gas
SCOPE 2
Purchased energy(electricity, steam,
heat)

Purchased energy
Introduction of solar power generation,
procurement of renewable electricity

Transportation
Modal shift, local production for local consumption,
introduction of EVs

Disposal of packaging materials
Plastic recycling, resource recycling

SCOPE 3
Manufacturing and transportation of raw
materials, commuting and business trips, etc.

SCOPE 3
Transportation, use, processing, anddisposal of products

SCOPE 1Own businessactivities

Raw materials
Waste reduction, yield improvement, bio-cycling

Manufacturing
process
Fuel conversion, energy
savingInnovation
Innovation in amino acid production bio-cycle towards carbon
neutrality

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

16

Greenhouse Gas Emissions Reduction Results
Scope1 and 2, Total, Compared to FY2018

Reductionby 50%(Base year)(Target)Copyright(C)AJINOMOTO CO., INC. All rights reserved.

17

Japan’s First J-Credit Scheme Project using Amino Acids inDairy Farming(3) Reduce the GHG emissions
with feed with improved
amino acid balance

Product/ Technology
Division

Dairy farmer“AjiPro®-L” amino acid lysine
formulation for dairy cows

Ajinomoto Co., Inc. “Lysine”, the feed-grade amino acid
Outline of Product / Technology● Feed-grade amino acids that supplements the essential amino acid “Lysine,” which isparticularly prone to deficiencies, to enable more efficient intake of necessary
nutrients● Improving the balance of amino acids in livestock feed with lysine produced byapplying our unique, state-of-the-art biotechnology. It allows livestock to intake
necessary nutrients with less feed, resulting in less livestock manure and eventuallycontributing to a reduction in manure-derived nitrous oxide (310 times the greenhouseeffect in terms of CO2)
● Significant contribution to greenhouse effect gas reduction (240,000 tons of
extraterrestrial hindsight certified in FY2014 (in terms of CO2))(1) Sell “AjiPro®-L”

Reduction of feed ingredients with the improved
amino acids balance in the feed

Meiji Group(7) Meiji Group purchases the credits(9) Pay the charge for project operation(6) Convert the reduced GHG
emissions value to credits

Effect to reduce the lifecycle CO2
Compared to feed that does not have lysine , emissions are
reduced by about 5 % in terms of CO2
Distribution/
sales(2) Provide feed containing“AjiPro®-L” with improved
amino acid balance(4) Monitor the reduced
GHG emissions● Compared to feed that does not have lysine , emissions are reduced by about 5 % interms of CO2

Production(8) Pay the proceedsfrom credit purchases
to dairy farmers(5) Transfer the reduced
GHG emissions to
Ajinomoto Co., Inc.

Effect to reduce the lifecycle CO2

Procurementof ingredients

Use/ maintenance andmanagement

Disposal/ recycle

Reduction of greenhouse effect gas throughreduction of manure-derived nitrous oxide

Reduce GHG
emissions

J-Credit Scheme
Project

J-Credit Scheme

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

Meiji Holdings Co., Ltd.
Meiji Co., Ltd., Meiji Feed Co., Ltd.

(10) Offset the GHG
emissions of MeijiGroup with thepurchased credits

18

Bio-cycles that Contribute to Sustainable Agriculture
Circular amino acid fermentation processing• Introducing the resource-circulating amino acid fermentation processing method (bio-cycle) for
sustainable procurement of agricultural products while enriching local agriculture at fermentation
plants around the world as a way to ensure stable food resource availability and contribute tosustainable agriculture
Main raw materials
for amino acidproduction

Contributing to reduction of CO2
emissions from chemical fertilizer
production

Chemicalfertilizer

GHG
reduction
Sustainableagriculture

Replacing chemical fertilizers for
0.3 million hectares in terms ofsugarcane

0.1 million
hectarePartially
returned tosugarcanefieldsFertilizers
with organic
contents
0.8 million
ton

Sugarcane

Sun

Sugarcane fields

HarvestRecovering co-product as useful resources

Reduced food
loss

Corn

Cooperative mechanism with local communities at
enables sustainable production

Co-product
0.8 million
ton

Bio-cycle
Sugarcane“AJI-NO-MOTO®”,the umami seasoning

8 million ton
Sugar factory

Cassava“AJI-NO-MOTO®”
0.7 million ton

Nitrogencontent

Raw sugar
0.9 million ton

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

19

Initiatives in Thailand

Trial field

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

General field20

Toward Building of Sustainable Food System- Approach to Regenerative Agriculture in Thailand

Building ecosystems among more than 40
institutions in industry, government and academia
Production with reduced environmental burden

Direct contribution toagriculture

Support for farmers
Supporting production factory and independence of
farmers by providing knowhow through soil analysis
and study sessions

Original production technologies to save ingredients / fuels
Challenges to half plastic wastes / food loss

Agricultural development with thefermentation technology
Supply of mosaic disease-free seedlings
Education on agricultural methods and crop
diseases
Improving crop productivity and added value
Spraying / image analysis using drones
Microbial fertilizer
Soil analysis

Agricultural support
Improving efficiency of crop processing
processes
Agricultural human resource development
Effective use of agricultural residual
valuesWeather insurance
Financial support
Agricultural application/ database
Collaboration with government,
universities and research institutions

Improved health/nutrition
Providing less salt/sugar products andnutritiously balanced menu while keeping
delights of Thai cuisine

Domestically produced
ingredients
Using domestically produced cassava(1 million ton), chickens and pork

Cyclical use of resources
Reusing coproducts from production as fertilizers, feed, and soil amendment

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

21

Consideration of On-site Production of Ammonia
Production of ammonia
Producing only thequantity demanded
where it is needed

Production of products

Amino acids
Food/pharmaceuticalproducts

Distributed production in small
plants at each demand area

Agricultural
fertilizers

Reducing storage cost
Reducing transportation
cost
Reducing environmental
burden from transportation
Reducing environmental
burden from energy
consumption by using new
catalyst

Reducing theenvironmental burden bygenerating hydrogen, a raw
material for ammonia, fromrenewable resources(woodchips)

Chemical products

Factories

Fermentation processing of amino acids throughon-site production of ammonia
Low temperature,
low pressure, andlow energy

Nitrogen content(ammonia)

Water + Nitrogen = Ammonia
is produced

Using a new catalyst

Fermenter

Fermentation liquor(carbon source)

Adding fermenter and auxiliary ingredient(nitrogen content), etc.

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

22

Cooperation with Kawasaki City

Initiative for the net zero transition in the industry cluster, the Clean Ocean Material Alliance（CLOMA）
Connection between five key actions and lifecycle of plastic products
Landfill

Key action 2
Improved material recycling rate
Separate/collection of used
Collection
products

Decomposition

Collection
Flow

Material recycling

Energy recovery

Chemical recycling

Absorption

Utilization of biomass

Implementation and promotion of thecollection/ processing system

Biomass

Key action 3
Development/ social
implementation of the chemical
recycling technology

Biomass

Plastic
users

Recycling
company

Use
Company
supplying thefinal productsCompany
supplyingmaterials

Development of materials
and products with lessenvironmental burden

Company
processing
materials

Production of
products

Productionof materials

Key action 1
Reduced plastic use

Fossil resources
Key action 5
Development / use of paper /cellulose materials

Key action 4
Development / use of
biodegradable plastic

Key action 2
Improved material recycling rate
Development and promotion ofeasy-to-recycle products

CLOMA is planning the PCRlarge-scale collection test

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

23

Holistic approach

Since respective issues in the sustainability environment are closely related, it is necessary to proceed
in a holistic manner.
Natural resources

Conservation of water
resource and soil

Respect forhuman rights

Conservation of biodiversity

Conservation of forests and peatlands

Sustainable procurement

Reduction of Greenhouse
gases

Reduction of food loss

Resource-circulating
society

Reduction of plastic wastes

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

24

Toward Creation of Positive Impacts

The Ajinomoto Group is committed to evolving AminoScience® to create a positive impact andcontribute to the creation of a society where we can grow together with the planet, communities,
and Seikatsusha.
Growing together with thecommunities with positive
impacts

Minimizing negative impacts
as a responsible company
Response to
climate change
Sustainableprocurement

Reduction of greenhouse gases

Net-zeroProtection of forests/ peatland
Respect for human right

Solving essential social
challenges

Procurement of certified products
Traceability
Response to risks and issues

 Support for Producers
 Regenerative Agriculture

Carbon positive

Community
development

Biodiversity
Natural capitals

Conservation of biodiversity
Conservation of water and soil

Nature positive

Plastics

3R+Renewable

Resource
circulating society

Horizontal recycling

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

25

Healthy Mind and Body

Diverse and Affluent Society

Circulating Society

Copyright(C)AJINOMOTO CO., INC. All rights reserved.

26